As of Wednesday, KB Home’s (NYSE:KBH) stock closed at $28.02, down from $28.66 the previous day. While KB Home has underperformed by -2.23%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, KBH fell by -31.00%, with highs and lows ranging from $50.20 to $24.78, whereas the simple moving average fell by -20.01% in the last 200 days.
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On September 19, 2022, KeyBanc Capital Markets Upgraded KB Home (NYSE: KBH) to Sector Weight. A report published by BofA Securities on August 25, 2022, Downgraded its rating to ‘Neutral’ for KBH. Credit Suisse also Downgraded KBH shares as ‘Neutral’, setting a target price of $35 on the company’s shares in a report dated July 11, 2022. Credit Suisse initiated its ‘Outperform’ rating for KBH, as published in its report on April 05, 2022. JP Morgan also rated the stock as ‘Overweight’.
Analysis of KB Home (KBH)
Investors in KB Home will get a return regardless of how the company performs over the next quarter since the company’s dividend stands at $0.60 per share. Further, the quarter-over-quarter increase in sales is 19.40%, showing a positive trend in the upcoming months.
One of the most important indicators of KB Home’s future performance is equity, which can be evaluated using several well-rounded types of analysis and research techniques. The goal here is to ensure that your current return on equity of 21.70% is sufficient for you to turn a profit off your investment.
For any stock, average volume can also provide valuable insight into volatility, and KBH is recording 1.54M average volume. On a monthly basis, the volatility of the stock is set at 3.55%, whereas on a weekly basis, it is put at 3.51%, with a gain of 1.05% over the past seven days. Furthermore, long-term investors anticipate a median target price of $39.43, showing growth from the present price of $28.02, which can serve as yet another indication of whether KBH is worth investing in or should be passed over.
How Do You Analyze KB Home Shares?
The Residential Construction market is dominated by KB Home (KBH) based in the USA. When comparing KB Home shares with other companies under Consumer Cyclical, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 3.84, there is a growth in quarterly earnings of 55.10%.
Along with the fundamentals, it is also important to consider how many employees own shares of the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 0.70%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 94.30% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in KBH shares?
The recent increase in stakes in KBH appears to be a result of several institutional investors and hedge funds increasing their positions. BlackRock Fund Advisors’s position in KBH has decreased by -0.11% in the first quarter. The company now owns 9,147,063 shares of the stock, with a value of $262.06 million, following the sale of -10,137 additional shares during the last quarter. The Vanguard Group, Inc. made another increased to its shares in KBH during the first quarter, upping its stake by 0.82%. During the last quarter, the company picked up 63,871 additional shares for a total stake of worth $225.95 million, bringing number of shares owned by the company to 7,886,560.
During the first quarter, Fidelity Management & Research Co added a 2,115,103 position in KBH. Macquarie Investment Management B purchased an additional 0.19 million shares in the last quarter, increasing its holdings by 4.95%, now holding 3.98 million shares worth $113.98 million. At the end of the first quarter, AllianceBernstein LP decreased its KBH holdings by -2.53% and now holds 3.59 million KBH shares valued at $102.95 million with the lessened 93109.0 shares during the period. KBH shares are owned by institutional investors to the tune of 94.30% at present.